Exercise 21-3

Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below.


Quarter 1


Quarter 2


Quarter 3


Quarter 4

Auditing   2,400   1,970   2,390   2,640
Tax   3,360   2,660   2,400   2,840
Consulting   1,860   1,860   1,860   1,860

Average hourly billing rates are auditing $82, tax $92, and consulting $103.

Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

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